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24+ Advanced Learning Loans Seminar presentation ... - lsc.gov

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24+ Advanced Learning Loans Seminar presentation ... - lsc.gov Powered By Docstoc
					Provider Seminars July 2012




                              1
Agenda
10:00 – 12:15
• Welcome & Introduction
• Policy Introduction and Overview
• Learner Journey
• Operating Model - Part 1

12:15 – Lunch

13:15 – 16:00
• Operating Model - Part 2
• Discussions in groups facilitated by AoC and AELP
• Panel Questions
• Next Steps and Future Activity
                                                      2
     Introduction to
Student Loans Company




                        3
SLC – Key Facts (1)
• Non profit making Government owned organisation
• Student Finance England in any one academic year has:
   – over one million applications (1.2million in AY 11/12) for Student
     Finance
   – of whom 500,000 were new applicants that year
   – In the month of June 2011 alone SLC processed 153,000 applications
     for Higher Education
• Last year SLC paid out:
   –   £5.5 billion directly to students in loans and grants
   –   £2.7 billion in tuition fees to Higher Education Institutions
• Repayments:
   – SLC manage the debt of 4 million customer and have approximately 3
     million customers in repayments
   – Last year we collected £1.3 billion in repayments

                                                                          4
SLC – Key Facts (2)
SLC are responsible for administering the following products and services
Student Finance England – inclusive of:     Loan Repayments
• Maintenance Loans and Grants              • SLC work with HM Revenue and
• Tuition Fee Loans                         Customs to collect loan repayments. SLC
• Childcare Grant                           collect repayments on 'mortgage style'
• Disabled Student Allowance                loans issued before 1998

Student Finance Wales – Inclusive of:       Bursaries & Scholarships
• Maintenance Loans and Grants              • SLC pay bursaries and scholarships on
• Tuition Fee Loans                         behalf of universities and colleges
• Childcare Grants
• Disabled Student Allowance                EU
• Education Maintenance Allowance           • SLC have a dedicated team for dealing
• Adults Learning Grant                     with applications from EU students in
                                            Higher Education
Student Finance Northern Ireland –
inclusive of:
• Maintenance Loans and Grants
• Tuition Fee Loans
• Childcare Grants
• Disabled Student Allowance
• Education Maintenance Allowance
                                                                                      5
   Policy Overview
Department for Business
 Innovation and Skills




                          6
Rationale
• CSR – greater pressure on resource
• Focus available funding on young people, those
  without basic skills, those seeking work
• Maintain access to learning for those outside these
  groups by providing finance
• Income contingent loans: providing insurance against
  low returns




                                                         7
Research and impact assessment
• 74% of learners surveyed said they might, probably
  would or definitely would take out a loan for learning
• Explaining terms and conditions led to positive views
• Aim is that all funding is taken up: 204,000 new
  enrolments each year
• Will require full programme of communications and
  marketing




                                                           8
Communication
• Tracker surveys – July, November, February
• Communications and marketing activity to commence
  in September
• Testing information materials with learners and
  providers
• Communication through providers, but also centrally




                                                        9
Helping the sector prepare
• Provider events – July
• Skills Funding Agency and Student Loans Company
   Stakeholder Group
• Dialogue with Area Teams
• Skills Funding Agency FAQs
• LSIS support
• Monthly BIS briefing:
http://www.bis.gov.uk/policies/further-education-skills/24-
   plus-advanced-learning-loans


                                                              10
Equality impact assessment
• Little or no evidence of disproportionate impact on
  most groups
• Learners aged 40+ less likely to react positively to
  loans – additional research
• Exploring Alternative Finance options
• Exploring how additional support could be provided to
  specific groups




                                                          11
Timeline
•   September 2012 – regulations come into force
•   Autumn 2012 – allocations to providers
•   April 2013 – loans application system available
•   August 2013 – learners with loans begin courses




                                                      12
Key facts (1)
• Budget: £129m in 2013-14, £398m in 2014-15
• Loans available for learners:
       ˗ aged 24 and over at the start of the course
       ˗ studying at Level 3 or above, including QCF
         Certificates and Diplomas, Access to HE, A-Levels
         and Advanced and Higher Apprenticeships
• Loans not means-tested (and not subject to credit checks)
• Loans paid directly to the Skills Funding Agency approved
  provider (not via the learner)
• Multiple loans available to support progression but loans
  not available to repeat same type of course at same level


                                                              13
Key facts (2)
• Loans available to cover the fee charged by the provider –
  up to a maximum equivalent to the funding rate for that
  qualification
• Minimum loan amount of £300
• For Apprenticeships the funding rate (and therefore
  maximum loan) will take account of the assumed employer
  contribution
• One application for the duration of each loan
• No restriction on learners accessing loans based upon their
  prior attainment
• No restriction on your ability to take on subsequent loans
  for HE based upon prior access to 24+ Advanced Learning
  Loans
                                                                14
Key facts – repayment
• Loan repayment will only start once the learner has finished
  their qualification and is earning more than £21,000 gross a
  year (threshold will increase in line with earnings)
• Repayment of loans is through the tax system; first
  repayments commence in April 2016 in line with changes to
  HE repayment
• Repayments are at 9% of income above £21,000 –
  irrespective of the amount of loan taken out
• Interest rates are variable based on income up to maximum
  of RPI+3% for incomes above £41,000
• Outstanding loan balances written off after 30 years
• Mechanism for voluntary repayments payable to the SLC
  (from individuals and employers)

                                                                 15
Who are the Delivery Partners?

•   Department for Business Innovation and Skills
•   Skills Funding Agency
•   Student Loans Company
•   HM Revenue and Customs




                                                    16
The Learner Journey
Skills Funding Agency and
 Student Loans Company




                            17
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27
The Operating Model
      Part 1
  Agency and SLC


                      28
Who does what?




                 29
Is it so different?




                      30
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            31
Learner Information and Guidance
• Key sources and channels for Information and
  Guidance
   – Gov.uk
      ˗ National Careers Service
      ˗ Apprenticeship Vacancy (AV)
      ˗ Lifelong Learning Accounts
      ˗ FE Choices
      ˗ Student Loans Company Contact Centre

   – Colleges and Training Organisations

• Materials will be provided to support all activity

                                                       32
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            33
Course Offer (1)

• The Course Offer will be issued to learners by the
  College or Training Organisation.
• A standard Course Offer will be provided for colleges
  and training organisations to issue.
• Information materials will also be available for issue
  alongside the Course Offer.
• The Course Offer is in development.




                                                           34
Course Offer (2)
• As a minimum the Course Offer will include:
   – Details on the college or training organisation
     (UKPRN, Name, etc)
   – Details on the course (Learning Aim Reference,
     Title, etc)
   – Start and End Dates
   – Fee Charged
   – Maximum Loan value




                                                       35
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            36
Application (1)
• Application process will launch in April 2013 for learning
  aims commencing from 1st August 2013
• Intention to have online application ready for launch
• Straight forward eligibility - Non means tested
  application
• Details from course offer given to learner will aid
  accurate completion of the application
• Allows for speedier processing of application if SLC
  have complete and correct details



                                                               37
Application (2)
Learner will be required to complete the following:
• Personal Details
   ˗ Including National Insurance Number (NINO) and ULN
   ˗ ULN not mandatory for application
• College or Training Organisation and Learning
  Aim Details
   ˗ Including Start and End dates and Learning Aim Reference
     Number
   ˗ Fee provider is charging
• Residency Information
• Passport details (if held)
   ˗ No original passports need to be submitted for UK Nationals
   ˗ Alternative forms of ID can be submitted
• Loan amount requested
                                                                   38
Assessment (1)
• SLC will assess the application:
   – Check personal eligibility inclusive of age, residency and
     identity
   – Passport number can be checked by link with Identity and
     Passport Service to verify identity
       ØChecks completed within 24 hours
   – Check College or Training Organisation is an approved
     provider
   – Check Learning Aim approved for funding
   – Loan requested not more than the Agency maximum or
     provider fee (whichever is lower)
   – NINO verified by link with Department for Work and
     Pensions (DWP)

                                                                  39
Assessment (2)
• Learner notified of the outcome of the assessment by
  SLC
   – E.G. Approved, Ineligible, Missing Evidence / Information
• Dedicated processing team within our processing unit
• Majority of applications dealt with by automated
  processing




                                                                 40
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            41
Learning Provider Portal (1)
• Working with an advisory group of cross section of
  providers and IT Suppliers
   – proving input and support into the programme of
     development of service interactions by drawing on
     expertise
   – Engagement with these groups will be ongoing as the
     project progresses in addition to wider provider population
• Accessible through a dedicated Learner Provider
  website from March 2013
• Agency will notify SLC of Approved Learning Providers
  and SLC will upload to the portal

                                                                   42
Learning Provider Portal (2)
• SLC will be in touch providers to establish primary
  contact – super user access granted
• Additional users can be set up by the primary contact
  with varying levels of access
• Landing page will contain any system messages and
  access to areas of the portal:
   – User administration
   – Area where providers will view learner details, confirm
     attendance and view reports




                                                               43
View Learner Information (1)
•   Available May 2013
•   View learner data for your organisation – via portal screens and
    export facility
•   Learner data will be available on the portal at pre-approval stage
•   Data will show application status and outcome of the assessment
•   Search for individuals or groups of learners using a set of filters
    which will include:
     – Learner personal details
     – Unique Learner Number (ULN) incl learners with missing ULNs
     – Customer Reference Number (CRN)
     – Learning aim data
     – Fee rate and fee loan values
     – Location code / course trainer code (if applicable)
     – Valid National insurance number indicator (required before
       payment can be released)

                                                                          44
View Learner Information (2)
• Summary level data returned from the search
• Ability to drill into individual learners details
• View history of any previous assessments/re-assessments
• Add ULNs where these are missing or correct if required
  where these have been provided by the learner
• Ability to add your own reference number against learners if
  preferable
• Early sight of information for checking prior to attendance
  confirmations




                                                                 45
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            46
Confirming Attendance/Learning (1)
• Available August 2013
• First confirmation of attendance required when the learner
  has been in attendance for two weeks (initial liability point)
  then quarterly thereafter
• Learners who require an attendance confirmation will be
  presented on a work list for providers to action
• ULN is mandatory prior to attendance confirmation – key
  identifier across the sector e.g. ILR
• Learning providers can submit confirmations via the screens
  directly or use the export / import function - xml format



                                                                   47
 Confirming Attendance/Learning (2)

• Learning providers have the ability to notify SLC when a
  learner has withdrawn or suspended – learners will not be
  liable for the remainder of the loan after they have stopped
  attending
• Learning providers have the ability to notify SLC of non
  attendance. For example, if a learner leaves prior to initial
  liability point of two weeks or has never attended
• SLC will cancel applications for any learners with no
  attendance confirmation three months after proposed start
  date
• Once attendance has been confirmed after the initial liability
  point payments will be made on a set date each month
                                                                   48
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering


                                            49
Payments
• After the 1st attendance confirmation payments are made
  on a monthly basis
• Timely payments are facilitated by:
   – Checking the learner has a National Insurance Number
     and help encourage the learner to provide this where
     missing
   – Check ULN is provided and accurate and complete the
     field if missing
   – Check Learning Aim data is accurate
   – Confirm attendance in a timely manner


                                                            50
Financials and Reports
• Statement available of each payment made – view on
  screen or export
• Breakdown of each payment by learners and
  amounts paid. Any recoveries detailed where
  applicable
• Annual position breakdown:
   – Totals of payments scheduled
   – Totals of payments received
   – Totals of payments blocked
   – Totals of any recoveries
   – Anticipated that this can shown monthly

                                                       51
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            52
Change of Circumstances (1)
• Learning Providers can submit Change of
  Circumstances (CoCs) to notify SLC of the following:
   – Change of Learning Aim details (with the exception of
     learning provider – must be a withdrawal)
   – Cancellation (prior to liability point)
   – Withdrawal
   – Suspension
   – Resumption




                                                             53
Change of Circumstances (2)
• Can be done in bulk upload or via portal screens
• CoCs may result in reassessment and a change to the
  loan entitlement
• Learning Providers cannot change learner personal
  details
• Audit trail of CoCs submitted available
• Reported totals of each category of CoC available
• Allows providers to make changes to ensure data aligns
  with their records / ILR data



                                                           54
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering


                                            55
Summary




          56
Learning Provider Support and
Resources
• Learning Provider Services Website (estimated end July
  2012)
    – Access to the Portal (March 2013)
    – Bulletins and updates as we proceed with roll-out
      preparations e.g. early sight of technical specifications and
      file formats
    – Supporting material for the system
•   User Guides
•   E-learning materials
•   Awareness seminars
•   Operations helpdesk once systems are live
                                                                      57
Next steps and Contact Details
• Cascade to colleagues who will be responsible for the
  administration processes

• Regularly check our website for updates and key
  messages
   – www.lpservices.slc.co.uk (estimated available end July
     2012)


• Queries on administration/SLC systems contact:
  – LPservices@slc.co.uk

                                                              58
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering

                                            59
Repayments (1)
• Deducted from earnings through the tax system from April
  2016
• Learners who complete prior to this can make voluntary
  repayments
• Repayments will be made at 9% of earnings above £21,000
• If earnings fall below £21,000 repayments will stop until
  earnings go back above £21,000




                                                              60
Repayments (2)
• Example monthly repayment amounts:
• Income each year before tax:


 Up to £21,000                   Repay £0
 £22,000                         Repay £7
 £25,000                         Repay £30
 £30,000                         Repay £67
 £35,000                         Repay £105
 £40,000                         Repay £142

                                              61
Repayments (3)
• Interest accrues as each payment is made whilst
  learning
  • RPI + 3%
• Not working or earning below £21,000
   – RPI
• Earning £21,000 to £41,000
   – RPI + up to 3% (sliding scale)
• Earning more than £41,000
   – RPI + 3%


                                                    62
The Operating Model
      Part 2
      Agency



                      63
Contents
•   Learner Information and Guidance
•   Course Offer
•   Application and Assessment
•   Learning Provider Portal
•   Confirmation of Attendance / Learning
•   Payments
•   Change of Circumstances
•   Summary
•   Repayment
•   Provider Support in Delivering
                                            64
Introduction
 • Approach to maximising and reviewing loan performance
   will be led in consultation with the sector.
 • We will give providers a ‘facility’ for loans funding –enabling
   them to maximise their offer to learners.
 • The methodology for agreeing the facility will be provided by
   the end of July (following discussions and consultation).
 • We will provide the ability for providers to plan the transition
   by developing a shadow funding calculation in the Learner
   Information Suite.
 • The initial loan facility will be issued in September and
   confirmed in December 2012 based on 2011/12 full year
   data.


                                                                      65
Methodology
• The loans ‘facility’ provides the ability to deliver – actual
  funding is dependant on demand.
• Calculation of the loans facility will be based on delivery of
  ‘loans type activity’ delivered in 2011/12.
• The adult skills budget allocation for 2013/14 will reflect the
  removal of new learners now being funded through loans.
• Continuing learners from 12/13 will be funded through the
  adult skills budget until completion.




                                                                    66
Methodology
• All providers delivering loans type activity will get a ‘facility’
  to deliver - minimum loan amount is expected to be around
  £300.
• The Agency will consider allowing all providers with an
  adult skills budget to recruit students funded through a
  loan. This will be further developed in consultation with the
  sector.
• Agency will publish details about how providers without a
  loans facility can access loans.




                                                                       67
Funding Rules 2013/14

• Aim to incorporate loans into main Funding Rules for 2013/14
  – final version to be published January 2013
• Currently working with Funding External Technical Advisory
  Group on funding rules in relation to loans provision
• Commitment to share an early draft of loans rules with the
  sector during Summer 2012 in order to receive feedback /
  issues requiring clarification




                                                                 68
 Approach to
 Performance Management
• The Agency will monitor uptake of loans to give
  assurance about use of the funding.
• We want to update the sector about emerging demand
  for loans, and amend provider loan facilities to reflect
  this.
• We also want to promote best practice and success,
  and address where delivery does not reflect
  programme policy.



                                                             69
Timescales & Next Steps (1)

• Indicative academic year funding position to be
  confirmed - July.
• Mechanisms for managing loans facility and provider
  access to be finalised – July.
• Providers encouraged to consider loans operating
  models and review potential funding available.
• LIS Updated to reflect loans policy to allow providers to
  plan transition.




                                                              70
Timescales & Next Steps (2)

• Agency developing monitoring and management
  process for 2013/14 in consultation with sector
  representatives during summer.
• Impact assessment at provider level on full year
  2011/12 performance continues.
• Agency to consider contract changes to support
  introduction of loans.
• Continuation of sector consultation through advisory
  groups.



                                                         71
Ask the Panel




                72
Next Steps and Future
       Activity



                        73
Next steps for you
•   Continue to speak to your Skills Funding Agency Relationship
    Manager
•   Consider what impact this will have on your organisation systems,
    processes and people
•   Disseminate messages from today within your organisation
•   Have a look at the draft LSIS prospectus, consider the support you
    may require and reply to LSIS’ survey
•   Look out in Update for
     – Regulations
     – Loans Funding Rules
     – More detail on the loans facility and management
     – Learner materials
     – Future awareness events
     – Updated FAQs
                                                                         74
Useful Links
• BIS Briefings:
www.bis.gov.uk/policies/further-educationskills/24-plus-advanced-learning-loan

• SLC Learning Provider Portal Updates
www.lpservices.slc.co.uk (coming soon!)

• LSIS Support
http://www.excellencegateway.org.uk/24plusloans

• Skills Funding Agency Guide to Loans
http://readingroom.skillsfundingagency.bis.gov.uk/sfa/24plusall_updated_guid
    e_and_faqs_may_2012.pdf

• Skills Funding Agency
http://skillsfundingagency.bis.gov.uk/providers/programmes/24AdvacncedLear
    ningLoans/
                                                                                 75
Thanks and close.




                    76

				
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